20100099 Ver 3_Pancho Release Task 7_20161206

Water Resources
ENVIRONMENTAL QUALITY
December 2, 2016
Mr. George Howard
Restoration Systems, LLC
1101 Haynes St, Ste 211
Raleigh, NC 27604
PAT MCCRORY
Governor
DONALD R. VAN DER VAART
Secretary
S. JAY ZIMMERMAN
Director
DWR Project #: 2010-00990
Wayne County
Re: Neuse Riparian Buffer and Nutrient Umbrella Mitigation Umbrella Banking Instrument
(UMBI)
Pancho Bank Parcel Credit Release — Task 7
Dear Mr. Howard:
On November 17, 2016, the Division of Water Resources (DWR) received a Year 4 Monitoring
Report from Restoration Systems, LLC (RS) for the Pancho Mitigation Bank. Overall, the site
appears to be doing well and on trajectory to meet the success criteria outlined in the UMBI.
Vegetation data results show that all but 2 plots out of 17 had stem densities higher than 320
stems/acre.
The monitoring bond (#22BSBGQ8686) for this site expires on January 14, 2017. On November 17,
2016, the Division of Water Resources (DWR) received a renewal of the monitoring bond
(#22BSBGQ8686) for the subject site. This bond will expire on January 14, 2018, and will cover
monitoring and maintenance activities through the next monitoring period.
The Conservation Easement for this Bank is currently held by RS. According to the UMBI for
this Bank, "At the conclusion of Bank activities, the conservation easement may be permanently
transferred to a DWQ approved landtrust or non-profit group to be held in perpetuity ". The
Bank Parcel Development Package states that RS intends to use the NC Wildlife Habitat
Foundation (NCWHF) to comply with the real estate provisions of the UMBI and BPDP.
Therefore, prior to the conclusion of the Year 5 monitoring season which will be in the Fall
2017, RS needs to submit documentation to DWR that the long term steward has accepted the
conservation easement in perpetuity and the easement has been successfully transferred to
NCWHF.
According to the UMBI signed on March 17, 2008, the following additional Project Milestones have
been met, and the corresponding credits shall be released:
State of North Carolina I Environmental Quality I Water Resources
1617 Mail service Center I Raleigh, North Carolina 27699-1617
919 807 6300

Task/Milestones
Pancho Year 4 (RS)
December 2, 2016
Page 2 of 2
Credit
7) Approval of Monitoring Report Year 4 (& renewal of monitoring bond) 10%
By copy of this correspondence, DWR confirms that you have satisfied the above requirements for
the above -referenced tract and 10% of your Neuse riparian buffer credits (0.10 x 218,671.2 ft, =
21,867.12 fe) are now available for sale. Additionally, 10% of your nitrogen nutrient offset credits
(0.10 x 25,753.31 lb -N = 2,575.33 lb -N) are now available for sale. Please update your credit
ledgers accordingly.
Please note that nutrient offset credits generated at this site must be used for impacts in
HUC 03020201 of the Neuse River Basin excluding the Falls Watershed. Additionally, the
riparian buffer credits must be used for impacts in the Neuse River Basin according to
guidelines in 15A NCAC 02B.0295, which became effective on November 1, 2015.
Please feel free to call Katie Merritt at [phone] if you have any questions regarding this
correspondence.
Sincerely,
Karen Higgins, Supervisor
401 and Buffer Permitting Branch
KAH/km
cc:
File Copy (Katie Merritt)
Raymond Holz — Restoration Systems, LLC (via electronic mail)

The Hartford
Monitoring Bond
Bond No. 22BSBGQ8686
Bond, T-4
One Hartford Plaza
Hartford, Connecticut 06155
KNOW ALL MEN BY THESE PRESENTS, that we, Restoration Systems, LLC, as Principal, and Hartford Fire
Insurance Company, licensed to do business in the State of, NC as Surety, are held and firmly bound unto North
Carolina Department of Environmental Quality — Division of Water Resources (Obligee), in the penal sum of One
Hundred Fifty Thousand and 00/100 Dollars ($150,000.00), lawful money of the United States of America, for the
payment of which sum, well and truly to be made, the Principal and Surety do bind themselves, their heirs, executors,
administrators, and successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that whereas the above bounden Principal has entered into certain
written Contract for the Neuse Riparian Buffer and Nutrient Mitigation Umbrella Banking Instrument with the above named
Obligee, effective the 14th day of January, 2014 for Pancho Bank Parcel Hydrologic Unit Code (HUC) 030202 and
more fully described in said Umbrella Banking Instrument (UMB), a copy of which is attached, which Agreement is made a
part hereof and incorporated herein by reference, except that nothing said therein shall alter, enlarge, expand or otherwise
modify the term of the bond as set out below.
NOW, THEREFORE, if Principal, its executors, administrators, successors and assigns shall promptly and faithfully
perform the Contract, according to the terms, stipulations or conditions thereof, then this obligation shall become null and
void, otherwise to remain in full force and effect subject to the following.-
Notwithstanding
ollowing:
Notwithstanding the provisions of the Contract, the term of this bond be from January 14, 2017 to January 14, 2018 and
may be extended annually by the Surety via issuance of a replacement bond. However, neither nonrenewal by the
Surety, nor the failure or inability of the Principal to file a replacement bond, shall itself constitute a loss to the Obligee
recoverable under this bond or any renewal or continuation thereof. The liability of the Surety under this bond or any
continuation certificates issued in connection therewith shall not be cumulative and shall in no event exceed the amount
as set forth in this bond or any additions, rider, or endorsements properly issued by the Surety as supplements thereto.
Sealed with our seals and dated this 1 day of November, 2016.
I�
1
Witness
Agreed and acknowledged this
By
day of 201(p
Restoration Syste LC
Prin 5par
HARTFORD FIRE INSURANCE COMPANY
Honeycutt, Attorney -i
4309 Emperor Blvd., Suite 300
Durham, NC 27703

Direct Inquiries/Claims to:
THE HARTFORD
POWER OF ATTORNEY one Hartford Plaza
Hartford, Connecticut 06155
email.• [e-mail]
call: 888-266-3488 1 fax: [phone]
KNOW ALL PERSONS BY THESE PRESENTS THAT: Auencv Code: 22-270197
© Hartford Fire Insurance Company, a corporation duly organized under the laws of the State of Connecticut
0 Hartford Casualty Insurance Company, a corporation duly organized under the laws of the State of Indiana
© Hartford Accident and Indemnity Company, a corporation duly organized under the laws of the State of Connecticut
Hartford Underwriters Insurance Company, a corporation duly organized under the laws of the State of Connecticut
Twin City Fire Insurance Company, a corporation duly organized under the laws of the State of Indiana
Hartford Insurance Company of Illinois, a corporation duly organized under the laws of the State of Illinois
Hartford Insurance Company of the Midwest, a corporation duly organized under the laws of the State of Indiana
Hartford Insurance Company of the Southeast, a corporation duly organized under the laws of the State of Florida
having their home office in Hartford, Connecticut (hereinafter collectively referred to as the "Companies") do hereby make, constitute and appoint,
up to the amount of Unlimited
Bobbi D. Pendleton, Kenneth J. Peeples, Neil B. Biller, Angela B.
Britt, Heather Burroughs, Phoebe C. Honeycutt, Christopher A. Lydick,
Julia C. McElligott, Adam Pfanmiller, Jason Lee Sayers of DURHAM,
North Carolina
their true and lawful Attorney(s)-in-Fact, each in their separate capacity if more than one is named above, to sign its name as surety(ies) only as delineated
above by ®, and to execute, seal and acknowledge any and all bonds, undertakings, contracts and other written instruments in the nature thereof, on behalf
of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds
and undertakings required or permitted in any actions or proceedings allowed by law.
In Witness Whereof, and as authorized by a Resolution of the Board of Directors of the Companies on August 1, 2009, the Companies have
caused these presents to be signed by its Vice President and its corporate seals to be hereto affixed, duly attested by its Assistant Secretary. Further,
pursuant to Resolution of the Board of Directors of the Companies, the Companies hereby unambiguously affirm that they are and will be bound by any
mechanically applied signatures applied to this Power of Attorney.
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John Gray, Assistant Secretary
STATE OF CONNECTICUT
ss. Hartford
COUNTY OF HARTFORD )
M. Ross Fisher, Vice President
On this 12th day of July, 2012, before me personally came M. Ross Fisher, to me known, who being by me duly sworn, did depose and say: that
he resides in the County of Hartford, State of Connecticut; that he is the Vice President of the Companies, the corporations described in and which executed
the above instrument; that he knows the seals of the said corporations; that the seals affixed to the said instrument are such corporate seals; that they were
so affixed by authority of the Boards of Directors of said corporations and that he signed his name thereto by like authority.
Kathleen T. Maynard
mit#ICATI Notary Public
My Commission Expires July 31, 2016
I, the undersigned, Vice President of the Companies, DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of the Power
of Attorney executed by said Companies, which is still in full force effective as of
Signed and sealed at the City of Hartford. IV t
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Kevin Heckman, Assistant Vice President
POA 2012